Does Your Company Need ePayment Solutions?

Incorporating ePayment solutions into accounts receivables processes can transform an organization’s financial supply chain and uncover new efficiencies, revenues and value-add business benefits. Electronic invoicing and payments are not only good for AR departments, but also give business buyers greater visibility into active and historic invoices, enhances payment security and improves ability to capture discounts. However, a staggering number of companies are still heavily reliant on paper and mail-based invoicing processes. According to a recent study by the Remittance Coalition, 67 percent of corporations receive the majority of B2B payments via check.

Challenges Companies Face Without ePayment Solutions

Paper-based check invoice settlement causes several problems throughout the financial supply chain and in organization’s accounts receivables departments:

  • Inefficiencies: Mail-in check payments are inefficient and hampering modern AR departments. Most mail-in payments can take more than 45 days to process, while electronic payments can be processed within 10 days. They are also extremely labor-intensive, increasing costs and taking valuable time away from AR departments.
  • Inaccurate or Incomplete Data: Whenever human intervention is required in the invoicing process, there is a greater risk of error and incomplete information.
  • Limited Visibility: Paper-based invoicing processes make it difficult to aggregate and analyze real-time and historical payment data in a central location. Without access to accurate, up-to-date payment information, AR departments will struggle to make data-driven decisions and improve financial supply chain operations.
  • Lack of Compliance: Traditional mail-in payments lack the oversight capabilities to ensure all internal and external compliance regulations are met.
  • Minimal Payment Security: In addition to compliance issues, mail-in check payments are not very secure. Mail-in invoices can be lost, stolen or damaged, making it difficult to standardize invoice processing effectively and protect cardholder information and data.

Although ePayment solutions are a clear driver of growth and efficiency in enterprise AR departments, adoption has been slow due to remittances issues. The same Remittance Coalition study found that one-third of corporations said customers’ inability to apply electronic remittance information was a top barrier to electronic payments adoption. This is largely because most of the remittance documents AR departments receive via e-mail must be manually re-entered into the organization’s system before reconciliation—a process that lends itself to errors and increases in exceptions.

Using a Reverse Lockbox to Improve ePayment Solutions

Reverse lockboxes from Direct Insite address remittance issues in electronic payments processes by simplifying electronic invoice creation and remittance. With a reverse lockbox, organizations no longer need to re-key invoice payment information, reducing instances of errors and inaccurate data. As a secure, PCI compliant solution, Direct Insite’s PAYBOX® platform processes a variety of payment types, including ACH and credit cards, while integrating seamlessly with existing legacy technology and ERP platforms.

By leveraging ePayment solutions, organizations can overcome all of the challenges associated with manual, paper-based invoicing processes, streamline collections, and improve working capital management and cash flow. PAYBOX enables companies to dramatically improve operations and automation in AR departments. For more information about how reverse lockboxes and ePayment capabilities can transform your enterprise’s AR processes and drive real business growth, call us today at (610) 212-2487.

Accounts Receivable Solutions